What does anchoring bias refer to in decision-making?

Anchoring bias in decision-making refers to the cognitive bias where individuals rely heavily on the first piece of information they receive (the "anchor") when making decisions, even when subsequent data may suggest a different course of action. This initial information becomes the reference point, and individuals find it difficult to adjust their thinking away from it, leading them to hold onto their initial judgment despite new evidence that may contradict it.

For example, if a person is told that a car is worth a certain amount, they might use that figure as a benchmark, making it challenging for them to evaluate the car’s actual value realistically if new pricing information is presented later. As a result, the decision-maker may ignore more relevant information that arises after the anchor is established.

In contrast, the other options do not accurately capture the essence of anchoring bias. Overlooking initial data isn't consistent with the concept, as anchoring requires that the initial information be recognized and prioritized. Relying solely on random inputs deviates from the systematic nature of anchoring, which is based on the first relevant data point, not arbitrary information. Finally, validating past decisions may touch on other biases, like the hindsight bias, but does not align with the anchoring bias's core principle of sticking to